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The Internet Computer (ICP) crypto asset is facing a critical support level as bearish momentum has caused an over 32% price drop in the last 30 days. Currently ranked 19 by market cap at $5.83 billion, ICP is trading at $12.59, down 1.28% over the last 24 hours and over 14% over the last 7 days as of writing.
ICP Price Chart: CoinMarketCap
Despite the recent downturn, the project has announced major upgrades and integrations aimed at establishing ICP as the "Layer Zero for Bitcoin" and enabling decentralized finance (DeFi) applications built around Bitcoin's blockchain. A few days ago, the Internet Computer activated an upgrade designed to allow ICP smart contracts to interact with Ordinals and BRC-20 tokens inscribed on the Bitcoin blockchain.
Alao, OmnityNetwork has integrated with ICP's cross-chain "Chain Fusion" technology, allowing users to trade Ordinal-inscribed Rune tokens on ICP with zero gas fees and without clogging Bitcoin's network, helping Dfinity's use ICP as a scalable base layer to expand Bitcoin's limited programmability.
On the technical analysis front, the Internet Computer token has experienced intense bearish momentum since hitting a high of $20.90 on March 27th. After repeated rejections at the ascending trendline support around $11 and the neckline of a head-and-shoulders pattern at the $10 zone, ICP appears poised to retest these crucial support levels.
Since late January 2024, ICP has been forming what technicians call a "head-and-shoulder pattern" reversal pattern, with the $16.40 area serving as the right shoulder after the initial high of $20.90 was the head. The ascending trendline from December 20th has provided support, with ICP finding buyers each time it touches that line. Price is poised to test it once again. Can it still hold off from further drops as it has always?
ICPUSD Daily Chart: TradingView
Today, ICP opened at $12.860 and has traded between $13.086 high and $12.138 so far. A successful retest of the ascending trendline or neckline support could open the door for bullish activity and a move back towards the recent highs of $16.40 and $20.90 highs. However, a break below these key levels could precipitate further downside toward $10 or lower.
On the 4-hour chart, ICP is bouncing between the $12 and $13 levels, with the Relative Strength Index (RSI) sitting at 38, nearing oversold territory. If the RSI reading dips into the oversold zone as ICP tests support, it could indicate a buying opportunity.
ICPUSD 4-Hour Chart (TradingView)
Looking further out, analysts have differing views on where ICP could be headed. Bitnation is bullish, projecting ICP to reach $49.94 by the end of 2024, while PricePrediction.net has targeted ICP trading between $25.14 to $29.68 in 2025.
As the Internet Computer continues its blockchain upgrade push and DeFi integrations, ICP can find solid support and resume its uptrend. The next few weeks could prove pivotal in determining ICP's near-term price trajectory.
